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To: Sarmad Y. Hermiz who wrote (228524)	3/20/2007 2:13:29 PM
From: seti	Respond to of 275872

The item of interest is not whether someone can do 65 nm. It is whether IBM's consortium process is competitive. Supposedly, Sony lost money on their game machine. They probably did lose money, but this cannot be attributed solely to cell. The playstation (as well as xbox) model is to sell the machine at a lost and make it up on the games and licensing.

To: Sarmad Y. Hermiz who wrote (228524)	3/20/2007 2:15:41 PM
From: combjelly	Read Replies (1) \| Respond to of 275872

"Supposedly, Sony lost money on their game machine." That statement, as it stands, is meaningless. Consoles use the Gillette model. In other words, sell the razor(console) at a loss and make it up on the blades(games). Now, at this juncture Sony is selling at a substantial loss and Microsoft and Nitendo are selling at a profit. At some point, Microsoft will decide to go for market share and they will cut prices to compete with Wii instead of the increasingly irrelevant PS3. If you have looked at a teardown on the PS3, there are many areas where their cost is much higher than the other two. From the Blu-Ray player on down, it is a much more expensive machine. The Cell processor is not the major cost driver. As you can see from here isuppli.com the Cell processor at an estimated cost of $89 is not the problem.